Sorry to hear this matey, I can only apologise for the lack of service you seem to have recieved from the Police. From the events you've described, it does seem that the officers have fallen short slightly on their duty. It's true they don't have to report 'damage only' accidents. But if there are other offences present, they still have to deal with them. Even if they didn't want too, they could have called down an Oscar (traffic) unit to attend and report an their behalf. The rats would be more than happy to do so, as their return of work is judged by amount of process. If I were in your shoes, I would take the following course of action :-
1) Obviously report the matter to your insurance, you have the other drivers details and reg number to provide to them, so there's no way he'll get away with not informing his insurance company. When informing them, tell them about the previous damage you noticed on his car prior to the accident, and that you feel it was wholly contributory to the accident occuring. Tell them you were informed by the driver that he got bored of waiting for recovery, so he decided to drive the car home. They will then be able to trace the request he made for recovery, in the request, he would have told the recovery the nature of the damage so they could sent out a suitable recovery vehicle, this aids your allegation that the car was unfit to drive at the time of the accident.
2) Go to the front office of your nearest police station and ask to speak to the duty officer. He's the inpector in charge of the station and inform him of the events. He'll then investigate on your behalf using the CAD number generated at the time of the 999 call as reference, he'll be able to obtain the attending officers identity, and look into any wrongdoing on their part. He can also potentially inform traffic possibly to take up investigating any alleged offences.
The above advice is obviously given impartially based on the information you've described above, if you've chosen to withhold information which paints it in a different light, that's down to you. Hope this helps.